GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered...

13
� (�) e( � - �) GAIL (India) Limited {A Government of India Undertaking" A Maharatna Company) ND/GAIL/SECTT/2020 Listing Department National Stock Exchange of India Limited Exchange Plaza, 5 th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East) Mumbai - 400051 Listing Department BSE Limited , 16 � �-110066, GAIL BH AWAN, 16 BHIKAIJI CAMA PLACE NEWDELHl-110066, INDIA / PHONE: +91 11 26182955 �/FAX: +91 1126185941 {-�/E-mail: info@gail.co.in August 13, 2020 Floor 1, Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400001 Sub.: Outcome of the Board Meeting - Un-audited Standalone & Consolidated Financial Results r quarter ended 30 th June, 2020 Dear Sir/ Madam, This is in continuation of our letter of even No. ND/GAIL/SECTT/ 2020 dated 03.08.2020 The Board of Directors of the Company in its meeting held today i.e. 13 th August, 2020, inter-alia approved the Un-audited Standalone & Consolidated Financial Results of the Company r the Quarter ended 30 th June, 2020. Please find enclosed herewith a copy of the Un-audited Standalone & Consolidated Fincial Results of the Company along with Limited Review Report of ASA & Associates, LLP and A.R. & Company, Joint Statutory Auditors of the Company on the financial statements. The Board meeting commenced at 11 :45 A.M. and concluded at j � 4 £ P.M. This is in compliance of SEBI (Listing Obligations d Disclosure Requirements) Regulations, 2015. Thanking You Yolly (A.K. Jl) Company Secretary Encl.: As above �/CIN L40200DL1984G01018976 www.gailonline.com

Transcript of GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered...

Page 1: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

� (��) fclfile.� ('l'.flT\7 mcf>R qi"[ � - � �)

GAIL (India) Limited {A Government of India Undertaking" A Maharatna Company)

ND/GAIL/SECTT /2020

Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East) Mumbai - 400051

Listing Department BSE Limited

TR>f 'l=fcf,'f,

16 � cITTlTT � � �-110066, 'l'fffil

GAIL BH AWAN, 16 BHIKAIJI CAMA PLACE NEWDELHl-110066, INDIA "C:f57,'f/ PHONE: +91 11 26182955 �/FAX: +91 1126185941 {-�/E-mail: [email protected]

August 13, 2020

Floor 1, Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400001

Sub.: Outcome of the Board Meeting - Un-audited Standalone & Consolidated Financial Results for quarter ended 30th

June, 2020

Dear Sir/ Madam,

This is in continuation of our letter of even No. ND/GAIL/SECTT/ 2020 dated 03.08.2020

The Board of Directors of the Company in its meeting held today i.e. 13th August, 2020, inter-alia approved the Un-audited Standalone & Consolidated Financial Results of the Company for the Quarter ended 30

th June, 2020.

Please find enclosed herewith a copy of the Un-audited Standalone & Consolidated Financial Results of the Company along with Limited Review Report of ASA & Associates, LLP and A.R. & Company, Joint Statutory Auditors of the Company on the financial statements.

The Board meeting commenced at 11 :45 A.M. and concluded at j � 4 £ P.M.

This is in compliance of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Thanking You Yo'['fully (A.K. Jlfa) Company Secretary

Encl.: As above

xfl�/CIN L40200DL1984G01018976

www.gailonline.com

Page 2: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg

A.R. & Co. Chartered Accountants A-403, Gayatri ApartmentAirlines Group Housing SocietyPlot No 27, Sector -10, DwarkaNew Delhi - 110075

New Delhi -110017

Independent Auditors' Review Report on the Unaudited Standalone Financial Results of the Company for Quarter ended June 30, 2020 Pursuant to the regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, as amended

The Board of Directors of GAIL (India) Ltd.

1. We have reviewed the accompanying statement of standalone unaudited financial results of GAIL (India) Ltd. ("the Company") for the quarter ended June 30, 2020 ("the Statement"), beingsubmitted by the Company pursuant to the Regulation 33 of the SEBI (Listing Obligations andDisclosure Requirements) Regulations, 2015, as amended from time to time.

2. This statement, which is the responsibility of the Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid downin Indian Accounting Standard 34 "Interim financial Reporting" ("Ind AS 34"), prescribed underSection 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder;and other accounting principles generally accepted in India. Our responsibility is to express aconclusion on the Statement based on our review.

3. We conducted our review of the Statement in accordance with the Standard on ReviewEngagements (SRE) 2410 "Review of Interim Financial Information Performed by the IndependentAuditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interimfinancial information consists of making inquiries, primarily of persons responsible for financial andaccounting matters, and applying analytical and other review procedures. A review is substantially less inscope than an audit conducted in accordance with Standards on Auditing and consequently does notenable us to obtain assurance that we would become aware of all significant matters that might beidentified in an audit. Accordingly, we do not express an audit opinion.

4. Based on our review conducted as above and procedures performed as stated in paragraph 3 above,nothing has come to our attention that causes us to believe that the accompanying statement of unauditedfinancial results prepared in accordance with applicable Indian accounting standards (Ind AS) and otherrecognized accounting practices and policies has not disclosed the information required to be disclosed interms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,as amended, including the manner in which it is to be disclosed, or that it contains any materialmisstatement.

5. Emphasis of Matter

We draw attention to tl1e following matters:

(i) No'te No. 3 to the standalone unaudited financial results regarding, various provisional transportationtariff orders issued by Petroleum and Natural Gas Regulatory Board (PNGRB), which have beencontested by the company at Appellate Tribunal for Electricity (APTEL) and also certain customershave challenged these orders of PNGRB in Court of Law. Adjustment if any will be recognized as andwhen matter is finally decided.

r•n;..)�

.. · .. ;;�.;i, i �/j '

/ ~--,

Page 3: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg New Delhi -110017

A.R. & Co. Chartered Accountants A-403, Gayatri ApartmentAirlines Group Housing SocietyPlot No 27, Sector -10, DwarkaNew Delhi - 11007 5

(ii) Note No. 4 to the standalone unaudited financial results regarding CESTAT order confirming thedemand for the differential amount by the Central Excise Department in the matter pertaining toclassification of 'Naphtha' manufactured by the Company, of Rs. 3,045.72 crore including applicablepenalty and interest thereon. Considering the merits of the case, Company has filed an appeal beforethe Hon'ble Supreme Court. Based on the legal opinion obtained, the Company does not foresee anyprobable outflow in the matter and accordingly has treated the same as contingent liability.

(iii) Note No. 6 to the standalone unaudited fu1ancial results regarding the impact of COVID -19pandemic on the Company's performance during the quarter ended June 30, 2020. The impact ofpandemic in future period cannot be ascertained as on date. However, the Management is of view thatthere will be no significant impact on the continuity of the business on long term basis/ on useful lifeof the assets/ on financial position.

Our conclusion is not modified in respect of above matters.

6. The Statement includes interim financial results/information of 12 joint operations, whose results reflecttotal revenues of Rs. 224.35 crores, total net profit after tax of Rs. 124.98 crores and total comprehensiveincome of Rs. 124.98 crores for the quarter ended June 30, 2020, which have not been reviewed by theirauditors. These interim financial results/information is based on the statement from the operators.Management is of view that this will not have a material impact on the Company's financial results.

For ASA & Associates LLP Chartered Accountants Firm Registration No: 009571N/N500006

Partner Membership No. 088810 UDIN: 20088810AAAACT5784

Place: New Delhi Date: August 13, 2020

For A.R. & Co. Chartered Accountants Firm Registration No: 0027 44C

Pawan KGoel Partner Membership No. 072209 UDIN: 20072209AAAABY8805

Page 4: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

GAIL (India) Limited New Delhi

Statement of Standalone Unaudited Financial Results for the Quarter ended 30th June 2020

. ·. ..

.· . Fof the Qu;,rter Ended

Sr.Nii,. Particulars 3.Dth Ju1!,e2020 3ist March 2020

I . ..

. .. · Unaudited I. Audited 1 Income

Revenue from Operations 12,087.46 17,755.01 Other Income 241.34 513.22 Total Income 12,328.80 18,268.23

2 Expenses Cost of Materials Consumed 770.58 967.18 Purchase of Stock in Trade 8,831.84 13,314.40 Changes in Inventories of Finished Goods, Stock in Trade and Work in 400.75 (430.68) Progress Employee Benefit Expenses 397.82 325.55 Finance Costs 49.50 32.93 Depreciation and Amortization Expenses 458.29 501.58 Excise Duty 0.56 1.89 Other Expenses 1,063.27 1,101.31 Total Expenses 11,972.61 15,814.16

Profit/ (Loss) before exceptional items and tax (1·2) 356.19 2,454.07 3

4 Exceptional Items Impairment of Investments (101.63)

5 Profit/(Loss) before tax (3·4) 356.19 2,555.70

6 Tax Expense : Current Tax 148.21 208.02 Adjustment of tax relating to earlier periods 917.56 Deferred Tax (47.53) (1,588.08) Total Tax Expense 100.68 (462.50)

7 Net Profit / (Loss) after tax [5·6) 255.51 3,018.20

8 Other Comprehensive Income (OCI)

(A) Item to he reclassified to Profit or Loss in subsequent periods:

Net movement In cash flow hedge gain / (loss) 37.85 383.04 Income tax effect thereon (9.53] (131.66)

Net OCI to he reclassified to Profit or Loss in subsequent period 28.32 251.38

(B) Items not to be reclassified to Profit or Loss in subsequent periods: (i) Re measurement gain/[loss) on defined benefit plans (4.12) (54.20) Income tax effect thereon 1.04 17.48

f3.D8l (36.72) (ii] Net gain / (loss) on FVTOCI of equity shares 403.77 [1,857.17) Income tax effect thereon

403.77 (1,857.171 Net OCI not to be reclassified to Profit or Loss in subsequent period fj+ii)

400.69 (1,893.89)

Other Comprehensive income for the period, Net of Tax (A+B) 429.01 (1,642.51)

9 Total Comprehensive Income for the period (Profit and Loss and OCI) Net of tax [7+8)

684.52 1,375.69

10 Paid• up Equity Share Capital (Face value on 10 each) 4,510.14 4,510.14

11 Reserves excluding Revaluation Reserves as per Balance Sheet

12 Earnings per share (Face Value of� 10 each)# a) Basic 0.57 6.69 b) Diluted 0.57 6.69

I (EPS for the Quarter is not annualised] There is no discontinued operation during the period.

(l!' in Crore except EPS) .

. .., . > .. . · .. · ·· .. For theJi1!,a1!,�ial )'ear

-c;-

30thJdne 2019

Unaudited

18,311.46 151.18

18,462.64

998.30 13,247.57

285.58

419.72 23.91

405.71 0.86

1,100.47 16,482.12

1,980.52

1,980.52

733.23

f40.24) 692.99

1,287.53

(204.07) 71.31

(132.76)

13.07 [4.57] 8.50

253.05 "

253.05

261.55

128.79

1,416.32

2,255.07

2.85 2.85

I ..

. .

Ended ·· · .. • . : :. '

31st Man:.Ji 2020

Audited

71,876.35 1,416.84

73,293.19

4,411.97 53,547.19

(598.62)

1,519.25 108.50

1,835.99 5.39

4,621.79 65,451.46

7,841.73

(101.63)

7,943.36

2,077.23 900.31

(1,654.81) 1,322.73

6,620.63

22.34 (5.62)

16.72

(14.99) 3.77

(11.22) (2,805.46)

r2,805.46l

(2,816.68)

(2,799.96)

3,820.67

4,510.14

37,433.66

14,68 14,68

# Earnings per share for the quarter ended 30th June 2019 has been restated as per Ind AS 33 on account of issue of bonus equity shares on 12th July 2019 in the ratio of one equity share for one equity share held, /-;;sac��q

/4,}/�- t(O<J) \

t� -(1 f (��12 t ·2d � 1

"• : ' �

\?-'<�COU .. ' "'.HS

I

t-·:

' �.___/ ...__ ___ -/i.�/

Page 5: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

GAIL (India) Limited New Delhi

Standalone Segment wise Revenue, Results, Assets and Liabilities for the Quarter ended 30th June 2020

Fqrthe Quarter Ended J '• . ·:

SrJ'll�,1-· P�rtictilars ' , ,

' '

30th June 2020 31s_tMarch2020 '

·, Unaudited Audited 1 Sel'ment Revenue#

A Transmission Services I) Natural Gas 1,268.13 1,554.20 II) LPG 153,55 171.86 8. Natural Gas Marketing 9,443.72 14,744.88 C. Petrochemicals 1,221.69 1,217.39 D. LPG and Liquid Hydrocarbons 747.91 1,153.91 E . Other Segment* 246.02 282.13 F. Unallocated 0.09 6.15 Total 13,081.11 19,130.52

Less :- Inter Segment Revenue 993.65 1,375.51 Sale/Income from Operations 12,087.46 17,755.01

2 See;ment Results fProfit/fLoss) before Interest and Tax)

A Transmission Services I) Natural Gas 716.65 892.03 II) LPG 81.48 94.51 B. Natural Gas Marketing [545.46) 602.64 C. Petrochemicals (154.43] 72.36 D. LPG and Liquid Hydrocarbons 266.20 528.14 E. Other Segment* 116.87 87.80 Total Profit before Interest and Tax 481.31 2,277.48

fi) Other unallocable Expenditure Net of Unallocable Income (75.62] 311.15 (ii) Finance Cost (49.50] [32.93) Total Profit before Tax 356.19 2,555.70

3 See;ment Assets A. Natural Gas Transmission/ Marketing 40,846.41 41,416.20 B. LPG Transmission 1,065.68 1,086.26 C. Petrochemicals 9,775.05 10,001.13 D. LPG and Liquid Hydrocarbons 898.01 963.46 E. Other Segment* 2,227.52 2,216.96 F. Unallocated 13,177.27 12,849.62 Total Assets 67,989.94 68,533.63

4 See;ment Liabilities A Natural Gas Transmission / Marketing 10,734.73 11,448.32 B. LPG Transmission 119.12 123.96 C. Petrochemicals 542.80 466.16 D. LPG and Liquid Hydrocarbons 166.54 162.04 E. Other Segment* 300.56 331.42 F. Unallocated 11,470.59 12,030.63 Total Liabiliies 23,334.34 24,562.53

# Segment revenue includes other operating income * Other Segment includes GAIL Tel, E&P, City Gas Distribution and Power Generation

ff in Crore) ·:_ For tll,e Financial· J ·.•

•.. .Year Ende_d ... ' '

' ' ,, .... .

3,0th)une 2019' '

' ..

•31stMarch2020

Unaudited Audited

1,479.73 6,034.43 134.59 636.41

15,461.30 59,954.62 1,112.76 5,432.13 1,145.65 4,233.71

275.39 1,106.16 0.57 9.39

19,609.99 77,406.85

1,298.53 5,530.50 18,311.46 71,876.35

859.49 3,539.77 61.56 330.91

850.48 2,156.24 (227.03] (245,50] 510.77 1,580.62 151.04 536.99

2,206.31 7,899.03

(201.88] 152.83 [23,91) (108.50)

1,980.52 7,943.36

38,342.64 41,416.20 1,059.54 1,086.26

10,095.06 10,001.13 805.54 963,46

2,113.32 2,216.96 14,219.98 12,849.62

66,636.08 68,533.63

10,321.95 11,448.32 136.71 123.96 579.06 466.16 194.26 162.04 421.70 331.42

9,473.15 12,030.63 21,126.83 24,562.53

Page 6: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

Notes to Standalone Financial Results

1. The above unaudited standalone financial results were reviewed by the Audit Committee andapproved by the Board of Directors in its meetings held on 13th August 2020.

2. The Financial Results have been reviewed by the Statutory Auditors as required under Regulation 33of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

3. The Company has filed appeals before Appellate Tribunal (APTEL), against various moderationdone by PNGRB in respect of six numbers of final tariff order(s) issued by PNGRB and also certaincustomers have challenged some of the Tariff orders of PNGRB in Court of Law. Adjustment onaccount of revision, if any will be recognized as and when the matter is finally decided.

4. CESTAT, Delhi vide order dated 30th

November 2018 has confirmed the demand of differentialCentral Excise duty of z 3,045.72 crore (Previous period: z 2,920.12 crore) including penalty andinterest in respect of an appeal filed by the Excise Department against the Company. Considering themerits of the case, the Company has filed an appeal before the Hon'ble Supreme Court. The appealfiled by Company has been admitted and stay has been granted by the Hon'ble Supreme Court oncompliance of the conditions of depositing a sum of z 20 Crore and furnishing security to the extentof z 132 Crore. Based on the favorable legal opinions obtained on the matter, the Company isconfident of favorable outcome.

5. Department of Telecommunication (DoT), Ministry of Communications, Government of India videletter dated 14th July 2020 has withdrawn the additional demand of Rs. 1,83,076 crore raised on theCompany towards provisional annual assessment of license fees in respect of IP-II license forvarious financial years. With this, nothing remains payable to DoT by the Company.

6. The COVID-19 pandemic globally and in India has impacted business in general and causingslowdown of economic activity. During the current quarter, the physical performance of theCompany was impacted due to nationwide lockdown. However, the same is expected to reach tonormal levels during upcoming period in FY 2020-21. The Company has assessed the possibleimpact of COVID-19 in preparation of financial results based on the internal and external sources ofinformation and expects no significant impact on the continuity of the business on long term basis,the useful life of the assets and overall financial position of Company.

7. Previous period figures have been regrouped/ reclassified, wherever required.

Place: New Delhi Date: 13th August 2020

For GAIL (India) Limited

(A. K. Tiwari)

Director (Finance)

(DIN: 07654612)

Page 7: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg, New Delhi -110017

A.R. &Co. Chartered Accountants A-403, Gayatri ApartmentAirlines Group Housing SocietyPlot No 27, Sector -10, DwarkaNew Delhi-110075

Independent Auditors' Review Report on the Unaudited Consolidated Financial Results of the Company for the Quarter ended 30

th June 2020 Pursuant to the regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, as amended

The Board of Directors of GAIL (India) Ltd.

1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results ofGAIL (India) Ltd. (''the Parent") and its subsidiaries (the Parent and its subsidiaries together referredto as "the Group"), and its share of the net profit/(loss) after tax and total comprehensiveincome/(loss) of its associates and joint ventures for the quarter ended 30th June 2020 ('theStatement") being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time totime.

2. This Statement, which is the responsibility of the Parent's Management and approved by theParent's Board of Directors, has been prepared in accordance with the recognition and measurementprinciples laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS34"), prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rulesissued thereunder and other ac;counting principles generally accepted in India. Our responsibility isto express a conclusion on the Statement based on our review.

3. We conducted our review of the Statement in accordance with the Standard on ReviewEngagements (SRE) 2410 "Review of Interim Financial Information Performed by theIndependent Auditor of the Entity", issued by the Institute of Chartered Accountants oflndia. A reviewof interim financial information consists of making inquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other review procedures. A review issubstantially less in scope than an audit conducted in accordance with Standards on Auditing andconsequently does not enable us to obtain assurance that we would become aware of all significantmatters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

4. The Statement includes the results of the entities as given in the Annexure to this report.

5. Based on our review conducted and procedures performed as stated in paragraph 3 above and basedon the consideration of the review reports of the other auditors referred to in paragraph 7 below,nothing has come to our attention that causes us to believe that the accompanying Statement, preparedin accordance with applicable Indian Accounting Standard (Ind AS) and other recognizedaccounting practices and policies has not disclosed the information required to be disclosed interms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015, as amended, including the manner in which it is to be disclosed, or that it contains any materialmisstatement.

Page 8: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg,

New Delhi -110017

6. Emphasis of Matter

We draw attention to the following matters:

A.R.&Co.Chartered AccountantsA-403, Gayatri ApartmentAirlines Group Housing SocietyPlot No 27, Sector -10, DwarkaNew Delhi - 110075

(i) Note No. 3 to the consolidated unaudited financial results regarding, various provisionaltransportation tariff orders issued by Petroleum and Natural Gas Regulatory Board (PNGRB),which have been contested by the company at Appellate Tribunal for Electricity (APTEL) andalso certain customers have challenged these orders of PNGRB in Court of Law. Adjustment ifany will be recognized as and when matter is finally decided.

(ii) Note No. 4 to the consolidated unaudited financial results regarding CESTAT order confirmingthe demand for the differential amount by the Central Excise Department in the matterpertaining to classification of 'Naphtha' manufactured by the Parent Company, of Rs. 3,045.72crore including applicable penalty and interest thereon. Considering the merits of the case,Company has filed an appeal before the Hon'ble Supreme Court. Based on the legal opinionobtained, the Company does not foresee any probable outflow in the matter and accordingly hastreated the same as contingent liability.

(iii) Note No. 6 to the consolidated unaudited financial results regarding the impact of COVID -19pandemic on the Group's along with its associates and joint ventures performance during thequarter ended June 30, 2020. The impact of pandemic in future period cannot be ascertained ason date. However, the Management is of view that there will be no significant impact on thecontinuity of the business on long term basis/ on useful life of the assets/on financial position.

Our conclusion is not modified in respect of above matters.

7. Other Matters

a) We did not review the interim financial results/information of 5 (Five) subsidiaries included inthe consolidated unaudited financial results, whose interim financial results/information reflecttotal revenues of Rs 2924.22 crores, total net loss after tax of Rs 48.58 crores and totalcomprehensive loss of Rs 48.58 crores for the quarter ended 30th June 2020 as considered inthe consolidated unaudited financial results. The consolidated unaudited financial results alsoinclude the Group's share of net profit after tax of Rs 367.82 crore and total comprehensiveincome of Rs 290.09 crore for the quarter ended 30th June 2020 as considered in theconsolidated unaudited financial results, in respect of 5 (Five) associates and 5 (Five) jointventures, whose interim financial results/information have not been reviewed by us. Theseinterim financial results/information have been reviewed by other auditors whose reportshave been furnished to us by the Management and our conclusion on the Statement, in so far asit relates to the amounts and disclosures included in respect of these subsidiaries, associates andjoint ventures, is based solely on the reports of the other auditors and the procedures performedby us as stated in paragraph 3 above.

b) The consolidated unaudited financial results includes the interim financial results/informationof 1 (One) subsidiary which has not been reviewed by their auditors, whose interim financialresults/information reflect total revenue of Rs Nil crore, total net loss after tax of Rs 0.09 crore

Page 9: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg, New Delhi - 110017

A.R. &Co. Chartered Accountants A-403, Gayatri ApartmentAirlines Group Housing SocietyPlot No 27, Sector -10, DwarkaNew Delhi -110075

and total comprehensive loss Rs 0.09 crore for the quarter ended 30th June 2020 as considered in the consolidated unaudited financial results. The consolidated unaudited financial results also include the Group's share of net profit after tax of Rs 84.85 crore and total comprehensive income of Rs 84.76 crore for the quarter ended 30th June 2020 as considered in the consolidated unaudited financial results, in respect of 3 (Three) associates and 5 (Five) joint ventures based on their interim financial results/information, which have not been reviewed by their auditors. These interim financial results/information are certified by the management. Interim financial results/information in respect of these subsidiaries, joint ventures and associates are provided by the Management based on the estimate. According to the information and explanations given to us by the Management, these interim financial results/information are not material to the Group.

c) The Statement includes financial results/information of 2 associates reflecting net profit aftertax of Rs 104.12 crore and total comprehensive income of Rs. 27.39 Crore. The aforesaidamounts have been included based on the audited statements of these entities as on 31st March2020. Management is of view that this will not have a material impact on the Groupcompany's consolidated unaudited financial results.

d) The Statement includes interim financial results/information of 12 joint operations included inthe standalone unaudited interim financial results/information of the entities included in theGroup, whose results reflect total revenues of Rs. 224.35 crores, total net profit before tax ofRs. 124.98 crores and total comprehensive income of Rs. 124.98 crores for the quarter ended30th June 2020, which have not been reviewed by their auditors. These interim financialresults/information is based on the statement received from the operators. Management is ofview that this will not have a material impact on the Company's consolidated financial results.

Our conclusion on the Statement is not modified in respect of the above matters.

For ASA & Associates LLP

Chartered Accountants Firm Registration No: 009571N/N500006

� Parveen Kumar

Partner Membership No. 088810 UDIN: 20088810AAAACU8617

Place: New Delhi Date: 13th August 2020

For A.R. & Co.

Chartered Accountants Firm Registration No: 002744C

Pawan KGoel

Partner Membership No. 072209 UDIN: 20072209AAAABZ2009

Page 10: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

Sr. No.

1

2

3

4 5 6

7

8

9

10

11 12

GAIL (India) Limited

New Delhi Statement of Consolidated Unudited Financial Results for the Quarter Ended 30th June 2020

For the Quarter Ended Particulars

30th lune 2020 31st March 2020 30th lune 2019 Unaudited Audited Unaudited

Income Revenue from Operations 12,180.62 17,938,08 18,481.56

Other Income 158,50 955,56 159,59

Total Income 12,339.12 18,893.64 18,641.15 Expenses Cost of Materials Consumed 1,416.44 985,82 991.27

Purchase of Stock in trade 8,099.83 12,733,13 13,240.58

Changes in Inventories of Finished Goods, Stock in Trade and Work in Progress 402.03 (336,16) 285,36

Employee Benefit Expenses 425.80 373,96 441.68

Finance Costs 52,56 215,62 29.99

Depreciation and Amortization Expense 521.11 639,89 436,91

Excise Duty 6.47 15.29 14.12

Other Expenses 1,136,32 1,324.11 1,150.94

Total Expenses 12,060.56 15,951.66 16,590.85 Profit/ (Loss) before share of profit/(loss) of associate and Joint Ventures and tax (1-2) 278.56 2,941.98 2,050.30

Share of Profit/ (Loss) of associates and Joint Ventures for the period 450.18 656,72 257,16

Profit/(loss) before tax (3+4) 728.74 3,598.70 2,307.46 Tax Expense:

Current tax 149,65 203.24 749.31

Adjustment of tax relating to earlier periods 917.56

Deferred tax r 63.881 f2,335.981 54,48

Total Tax Expenses 85.77 (1,215.18) 803.79 Net Profit / (Loss) for the period (5-6) 642.97 4,813.88 1,503.67

Other Comprehensive Income [OCI) a) Items to be rec1assified to Profit or Loss in subsequent periods: (i) Exchange differences on translation of foreign operations 60.26 14,62 82,80

Income tax effect thereon 60.26 14.62 82.80

(ii) Net movement in cash flow hedge gain /(loss) 37,85 383.Q4 (204,07)

Income tax effect thereon (9.53) (131.66) 71.31 28.32 251.38 f132.76l

Net other comprehensive income to be reclassified to Profit or Loss in subsequent periods (i+ii)

88.58 266.00 (49.96)

b) Items not to be reclassified to Profit or Loss in subsequent periods: (i) Re-measurement gain /(loss) on defined benefit plans (4.12) (54.18) 13.07

Income tax effect thereon 1.04 17.47 (4.57)

(3.08) (36.71) 8.50 (ii] Net gain/(loss] on FVTOCI equity Securities 403.78 (1,857.17) 253,05

Income tax effect thereon 403,78 (1,857.17) 253.05

(iii]Share of Other Comprehensive income in Associates/JVs for the period (77.01) 73.88 0.06

Income tax effect thereon f77.01l 73.88 0.06

Net Other Comprehensive Income not to be rec]assified to Profit or Loss in subsequent perlods(i+ii+iii):

323.69 (1,820.00) 261.61

Other Comprehensive Income for the period, net of tax (a+b) 412.27 fl,554.001 211.65

Total Comprehensive Income for the period (Profit and Loss and OCI), Net of Tax (7+8) 1,055.24 3,259.88 1,715.32

Profit for the period 642.97 4,813.88 1,503.67 Attributable to: Equity holders of the parent 654.33 4,728.37 1,501.95

NonMcontrolling interests (11.36) 85.51 1.72

Other comprehensive income for the period 412.27 (1,554.00) 211.65 Attributable to: Equity holders of the parent 412.27 (1,554.01] 211.65

N onMcontrolling interests 0,01

Total Comprehensive Income for the period 1,055.24 3,259.88 1,715.32 Attributable to:

Equity holders of the parent 1,066.60 3,174.36 1,713.60

NonMcontrolling interests fll.361 85,52 1.72

Paid-up Equity Share Capital (face value of'! 10 each] 4,510.14 4,510.14 2,255.07

Reserves excluding Revaluation Reserve as per Balance Sheet Earnings per share (in t) (Face value of U O each]# a) Basic, attributable to equity holders of the parent 1.45 10.48 3.33

b) Diluted, attributable to equity holders of the parent 1.45 10,48 3.33

I (EPS for the Quarter not annualised] There is no discontinued operation during the period # .Earnings per share for the quarter ended 30th June 2019 has been restated as per Ind AS 33 on account of issue of bonus equity shares on 12th July 2019 in the ratio of one equity share for one equity share held,

(-tin Crore ExceotEPSl

For the Financial Year Ended

31st March 2020 Audited

72,567.70 1,546.43

74,114.13

4-,411.97 52,878.13

(427,99) 1,633.74

308,94 2,080.16

59,28 4,987.56

65,931.79

8,182.34

2,246.60 10,428.94

2,116.20 900.17

r2,102.071 914.30

9,514.64

126.82

126,82 22.34 (5,62)

16.72

143.54

(14,96)

3.76 [11.20)

(2,805.46)

(2,805.46) (59.77)

(59.771

(2,876.43)

(2,732,891

6,781.75

9,514.64

9,422.05

92.59

[2,732.89)

(2,732.90)

0.01 6,781.75

6,689.15 92.60

4,510.14 42,638.50

20.89 20.89

Page 11: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

GAIL (India) Limited New Delhi

Consolidated Segment wise Revenue, Results, Assets and Liabilities for the Quarter Ended 30th June 2020

Sr. Particulars

No.

1 Segment Revenue#

A. Transmission Services

I) Natural Gas

II) LPG

B. Natural Gas Marketing

C. Petrochemicals

D. LPG And Liquid Hydrocarbons

E, City Gas

F. Other Segment•

G, Unallocated Total

Less: Inter- Segment Revenue

Sales I Income from Onerations

2 Segment Results

(Profit/(Loss) before Interest and Tax)

A. Transmission Services

I) Natural Gas

II) LPG

B,Natural Gas Marketing

C. Petrochemicals

D. LPG And Liquid Hydrocarbons

E. City Gas

F Other Segment• Total Profit before Interest and Tax

Add/ (Less) :(i) Other Un-allocable expenditure net ofUnallocable Income (ii) Finance Cost

Total Profit before Tax

3 Segment Assets

A. Natural Gas Transmission/ Marketing B. LPG Transmission C. Petrochemicals D. LPG And Liquid Hydrocarbons E, City Gas F. Other Segment• G. Un Allocated Total Assets

4 Segment Liabilities

A. Natural Gas Transmission / Marketing B. LPG Transmission C, Petrochemicals D, LPG And Liquid Hydrocarbons E. City Gas F. Other Segment* G. Un Allocated Total Liabilities

# Segment Revenue includes Other Operating Income *Other Segment includes GAIL Tel, E&P & Power Generation

For the Quarter Ended

31st March 30th June 2020

2020 30th June 2019

Unaudited Audited Unaudited

1,268.13 1,554.20 1,479.73

153,55 171,86 134,59

11,635.38 18,478.72 18,717,62

1,221.69 1,217.39 1,112.76

747,91 1,153.91 1,145,65

739.20 1,483.57 1,153.45

239.40 263,62 266,88

0,07 6.16 0,57 16,005.33 24,329.43 24,011.25

3,824.71 6,391.35 5,529,69

12,180.62 17,938.08 18,481.56

716,65 892.03 859,49

81.48 94,51 61.56

(614,06) 1,075,56 868,55

(154,43) 72.36 (227.03)

266,20 528.14 510.77

(0,86) 55,25 57,23

125,80 88.08 151.90 420.78 2,805.93 2,282.47

360.52 1,008.39 54,98 (52,56) (215,62) (29,99)

728.74 3,598.70 2,307.46

41,092.35 45,694.95 39,137,65 1,065.68 1,086.26 1,059.54 9,775.05 10,001.13 10,095.06

898,01 963,46 805,54 3,367.16 3,449.86 2,860.40 1,627.71 1,637.10 1,746.73

16,862.28 12,081.42 15,202.62 74,688.24 74,914.18 70,907.54

10,272.32 10,805.37 10,293.81 119,12 123,96 136,71 542,80 466,16 579,06 166,54 162,04 194,26 640.81 688.81 555,28 189,99 192,93 351.52

12,344,66 13,119,62 11,023.28 24,276.24 25,558.89 23,133.92

(t In Crore)

For the Financial Year Ended

31st March 2020

Audited

6,034.43

636,41

71,211.96

5,432.13

4,233.71

5,316.72

1,051.62

9.38 93,926.36

21,358.66

72,567.70

3,539.77

330.91

2,638.47

(245,50)

1,580.62

221.43

561.93 8,627.63

2,110.25 (308,94)

10,428.94

45,694.95 1,086.26

10,001.13 963,46

3,449,86 1,637.10

12,081.42 74,914.18

10,805,37 123.96 466,16 162.04 688.81 192.93

13,119.62 25,558.89

Page 12: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

Notes to Consolidated Financial Results

1. The above unaudited consolidated financial results were reviewed by the Audit Committee andapproved by the Board of Directors in its meetings held on 13th August 2020.

2. The Financial Results have been reviewed by the Statutory Auditors as required under Regulation 33of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

3. The Parent Company has filed appeals before Appellate Tribunal (APTEL), against variousmoderation done by PN GRB in respect of six numbers of final tariff order( s) issued by PN GRB andalso certain customers have challenged some of the Tariff orders of PNGRB in Court of Law.Adjustment on account of revision, if any will be recognized as and when the matter is finallydecided.

4. CESTAT, Delhi vide order dated 30th November 2018 has confirmed the demand of differentialCentral Excise duty of { 3,045.72 crore (Previous period: { 2,920.12 crore) including penalty andinterest in respect of an appeal filed by the Excise Department against Parent Company. Consideringthe merits of the case, the Parent Company has filed an appeal before the Hon'ble Supreme Court.The appeal filed by Parent Company has been admitted and stay has been granted by the Hon'bleSupreme Court on compliance of the conditions of depositing a sum of { 20 Crore and furnishingsecurity to the extent of { 132 Crore. Based on the favorable legal opinions obtained on the matter,the Parent Company is confident of favorable outcome.

5. Department of Telecommunication (DoT), Ministry of Communications, Government of India videletter dated 14th July 2020 has withdrawn the additional demand of Rs. 1,83,076 crore raised on theParent Company towards provisional annual assessment oflicense fees in respect ofIP-II license forvarious financial years. With this, nothing remains payable to DoT by Parent Company.

6. The COVID-19 pandemic globally and in India has impacted business in general and causingslowdown of economic activity. During the current quarter, the physical performance of the ParentCompany was impacted due to nationwide lockdown. However, the same is expected to reach tonormal levels during upcoming period in FY 2020-21. The Group has assessed the possible impactof COVID-19 in preparation of financial results based on the internal and external sources ofinformation and expects no significant impact on the continuity of the business on long term basis,the useful life of the assets and overall financial position of Group.

7. Previous period figures have been regrouped/ reclassified, wherever required.

Place: New Delhi Date: 13

th August 2020

For GAIL (India) Limited

(A. K. Tiwari)

Director (Finance) (DIN: 07654612)

Page 13: GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE ( ) fclfile. NEWDELHl ... · ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg A.R. & Co. Chartered Accountants

ASA & Associates LLP Chartered Accountants 81/1, Third Floor, Adchini Aurobindo Marg, New Delhi -110017

A.R. & Co. Chartered Accountants A-403, Gayatri ApartmentAirlines Group Housing SocietyPlot No 27, Sector -10, DwarkaNew Delhi-110075

Annexure to Limited Review Report on Unaudited Consolidated Quarterly Financial results of GAIL (India) Limited for the Quarter ended 30th June 2020 pursuant to the Regulation 33 of the SEBI (Listing Obligation and Disclosures Requirements) Regulations, 2015, as amended

Sr. No. Name of companies Country of Incorporation

A. Subsidiaries

1 GAIL Global (Singapore) PTE Ltd Singapore

2 GAIL Global (USA) Inc. USA

3 GAIL GAS Limited India

4 Tripura Natural Gas Co Ltd. (TNGCL) India

5 Bengal Gas Company Limited India

6 Konkan LNG Limited India

B. Joint Ventures

1 Central UP Gas Limited India

2 Green Gas Limited India

3 Ratnagiri Gas & Power (Private) Ltd (RGPPL) India

4 Maharashtra Natural Gas Limited (MNGL) India

5 Aavantika Gas Limited India

6 Bhagyanagar Gas Limited India

7 Talcher Fertilizers Limited India

8 Indradhanush Gas Grid Limited India

9 Vadodara Gas Limited India

10 T API Pipeline Company Limited Isle of Man

C. Associates

1 Indraprastha Gas Limited India

2 Petronet LNG Limited India

3 Mahanagar Gas Limited India

4 ONGC Petro Additions Ltd (OPAL) India

5 Ramagundam Fertilizers and Chemicals Limited India

6 Brahmaputra Cracker & Polymer Ltd India

7 Fayum Gas Company Egypt

8 China Gas Holding Limited Bermuda